SACRAMENTO – Business interests are hoping tor an ally in Gov. Gavin Newsom in trying to stave off abusive Private Attorneys General Act (PAGA) lawsuits.
“One interesting tidbit, his company, Plumpjack Group, was hit with a Private Attorneys General Act lawsuit,” said Tom Manzo, founder and president of the California Business and Industrial Alliance. “This is a big business that he owns, and I would hope that he sees first-hand what PAGA can do to a business. The business community can only hope he is not as influenced by the unions as Jerry Brown was.”
The Private Attorneys General Act was enacted in 2003 by then-Gov. Gray Davis. It allows private attorneys to act as the state to enforce labor laws on business owners. California Citizens Against Law Abuse Director Ken Barnes says the act is the "biggest threat" facing employers in the state.
The over-evolving Proposition 65 to the controversial California Consumer Privacy Act (CCPA) and PAGA are all challenges to doing business in the state.
Spectrum Location Solutions owner John Vranich determined in a seven-year study that around 9,000 companies moved their headquarters out of the state, according to a recent article published in The Signal.
CNBC also ranked California in last place of all the states for its regulatory and legal climate in its annual state-to-state business poll. Overall, it ranks 32nd, which is down from its 2018 ranking of 25.